Tuesday, June 26, 2007

British Pound Lower To Yen, Gains Ground Against Other Majors During European Session, Tuesday, June 26, 2007 5:43:54 AM

The British Pound trended lower versus the Japanese Yen during the European session on Tuesday. On the other hand, the Pound gained ground against the rest of majors. The Pound was higher against the Franc ahead and amid the release of the Swiss UBS consumption indicator for the month of May.

The German May import price index data released at 2:00 am ET caused very little price action in the Pound versus the Euro. But the Italian June business confidence and the Euro-Zone April current account data which were also released during the session helped the Cable to trade further higher.

The UBS Consumption Indicator, which signals private consumption trends in the Swiss economy, slid to 2.09 in May from a revised 2.38 for April, equaling the March reading. Markets were looking for a reading of 2.40 in May.

The traders are now looking for the US new home sales for May and the consumer confidence data for June which are slated for later in the morning.

Against the US dollar, the U.K.`s Cable showed choppy trading on late Monday in New York. The pair resumed the same trend in the early Asian deals on Tuesday. At about 2:30 am ET, the Cable slipped slightly and touched a low of 1.9957 within an hour. Soon after, the Cable bounced back completely and strengthened further. As of 5:40 am Eastern Time, the pair traded at 1.9994.

During late Monday in New York, the British Pound traded in a tight range versus the Euro. At about 8:35 pm ET, the Pound gained some pips but it gave back the gains within an hour and entered a range again. However, in the early European session on Tuesday, the Pound ticked up and has been continuing its uptrend currently. As of 5:40 am Eastern Time, the pair was quoted at 0.6731.

The U.K.`s Sterling ticked down against its Japanese counterpart on late Monday in New York. The Sterling lost ground further in the early Asian deals on Tuesday, but by about 9:15 pm ET Monday the pair advanced slightly. But the Sterling edged down soon after and extended its downtrend into the early European session of the day. As of 5:40 am Eastern Time, the pair collected 245.51 and this is the four day low.

The British currency moved sideways versus the Swiss Franc in the early Asian deals on Tuesday, but by about 10:50 pm ET Monday the pair weakened. Off 2.4505 at 2:30 am ET, the Cable reversed the recent losses completely and spiked further higher to 2.4595 after two hours. The pair then declined slightly and as of 5:40 am Eastern Time, it was worth 2.4563.